Business Law: Legal Systems and Dispute Resolution

Desklib provides solved assignments and past papers to help students succeed.

Business Law
Page | 1

Table of Contents
Section 1- – Nature of legal systems and legislations impacting businesses...................4
Task 1- (LO1 & LO2)........................................................................................................4
a) Discuss the meaning of the term Parliament is Sovereign and sources of law in
the country.................................................................................................................... 4
b) The role of the government in the law making process and how the statutory and
common law is applied in the justice of courts..............................................................8
Effectiveness of the legal system in terms of recent reforms and developments........10
c) Illustrate how company, employment and contract law has a potential impact
upon business.............................................................................................................11
Task 2- (LO3)................................................................................................................. 14
Section 2 -Legal solutions to business problems-- LO4.................................................18
Case 1........................................................................................................................ 18
Case 2........................................................................................................................ 19
Conclusion..................................................................................................................... 21
Page | 2

Introduction
Business law plays a significant role in maintaining the business in a reasonable and
transparent method. Business law supports the businesses to fulfill the government
requirements to regulate the business. In this report, the main discussion is over the
business function is to check whether the business activities are done in a lawful
manner or not. It highlights the role of the government of the United Kingdom in the
procedures of law creation. It also highlights the UK sources of making the law and
along with it, it also emphasizes the impact of numerous law and its applicability over
the business. Further, this assignment emphasizes the different types of the
organization and the ways they formed legally. Apart from this, it also emphasizes the
managing and funding of business organizations by assessing their merits and
demerits. The last and final part of this assignment emphasizes the dispute resolution in
the given case studies and guiding the parties to get it resolved within the stipulated
period of time.
Page | 3

Section 1- – Nature of legal systems and legislation impacting businesses
Task 1- (LO1 & LO2)
a) Discuss the meaning of the term Parliament is Sovereign and sources of law in
the country.
In the constitution of England, Parliament is termed to be sovereign in which the
sovereign means it is the title which is given to the topmost leader among the various
categories. Sovereignty posse’s independent right to govern and perform all the
important things and decisions. In the United Kingdom, Parliament sovereignty is the
fundamental part of the constitution which posses the power to create or end any law.
No legislation is overruled by the courts which are enacted by the Parliament and no
Parliament in the present has the right which cannot be changed by the future
Parliament. In case Day v Savage(1614) Hob 85, where it was held by the court that
the act of the Parliament is not valid if it is made against the natural equity. To
determine the law in the country, there are various sources that assist in this process
are mentioned below:
Legislations are the set of laws passed by the Parliament and the maximum portion of
the constitution is not in the written form. In the United Kingdom, Parliament posses the
supreme power over all the political bodies. The legislation is divided into parts named
primary and delegated legislation. Primary legislation is the legislation which consists
Parliament Acts and in contrary to this, secondary legislation is the granting of additional
power of making the law to an additional limb of the government by a stature. For
instance, the Misrepresentation Act 1967, Equality Act of 2010, Companies Act 2006 or
Health & Safety at Work Act 1974 (Foster, and Leigh, 2016).
Page | 4

European Convention on Human Rights is a treaty of international human rights
consists between the 47 states who are the members of the Europe Council. The main
aim of this treaty is to protect the law rule and supports in promoting democracy in the
countries of Europe. It ensures that the government of the member’s country not abuse
then rights of its citizens and supports in the fulfillment of promises (Mowbray, 2015).
Common law in England, are the laws which support the judges to pronounce the
judgment ion the cases involves similar facts and nature buy comparing it with previous
cases. This law considers by the judges to resolve the cases by taking assistance from
the judgment already passed by the courts(Foster, and Leigh, 2016).
European Union Law is one of the crucial UK law sources whose main aim is to make
the practice of trade and commerce easy while the movement of goods and services
between the nations. England is also the members of the European Union and all the
laws enacted by the Union are abide by the UK. Its essential purpose is to break down
the barriers in trade and commerce and enhance the level of peace among the different
nations with the assistance of technological development and expansion(Mowbray,
2015).
UK laws (statutory, common and equity)
In the United Kingdom, equity law provided appropriate remedies in the situation when
the law of statutory and precedent nature clashed or not applied equally. This helps out
in prevailing fairness and transparency when the law is not able to address the issue or
address it in an ineffective manner and case laws are its important source.
Common law is the law through which judges are bind with the judgment passed in the
preceding cases and its essential sources are general customs, authority books and
conventions of Parliament (Foster, and Leigh, 2016).
Page | 5

Statutory law governs the Parliament to modify any law which is passed by the
legislature where the bill gets the approval of two of the Houses that is House of Lords
and Commons(Mow bray, 2015).
Difference between Civil and Criminal Law
Civil law guides the victims by providing compensation to individuals or organizations.
The main purpose of civil law is to deal with the issues or problems by proving
compensation to the victims. In this law, the cases are filed by the private party, where
the liability of the judges decided by the judges on the basis of the evidence produced
by the claimant. This law consists of the matter in relation to the divorce matters,
personal injury, child custody, disputes related to property, land and tenant disputes,
etc. (Foster, and Leigh, 2016).
In Criminal law, the guilt of the defendant is proved where the guilty are found in
beyond the reasonable doubt. This law affects the whole society interest where the
matter includes theft, bribery, assault, murder, trafficking, etc.
Structure of courts in the United Kingdom
In the United Kingdom, there are different types of courts prevail under the court's
system. The cases of criminal nature commence in the court of magistrate but the
matter of more serious nature and its related matters are entered into the Crown Court
and the appeal under matters of criminal nature will prefer in the High Court and in the
end the appeal made to the high court and Supreme Court (Foster, and Leigh, 2016).
Page | 6

b) The role of the government in the law-making process and how the statutory and
common law is applied in the justice of courts.
The law main purpose is to guide the society as well as the businesses to conduct the
business is lawful manner. Parliament has the responsibility to create legislation which
includes the House of Commons and Lords. The acts passed by the UK parliament are
applicable in all the four countries named England, Wales, Ireland, and Scotland.
Basically, the bills in the UK are categories into the public and private bill. Public bill is
the bill of the government which concern with the public at large and these are the bills
which are adopted by the Cabinet. In contrary to this, private members bill is billed
belongs to the category of non-government and these bills are introduced by the non-
ministerial members of Parliament. These are the bills concerned with the matte local
interest or related to any particular person or localities. The commencement of the bill
starting with the assistance of the House of Common and Lords along with their
approval. The creating of the bill is divided into various stages includes (Giliker, 2017):
First Reading
The commencement of the first reading stage is formal where the bill title is read and
published in the two of the Houses that is Lords and Commons (Mowbray, 2015).
Second Reading
This reading involves the discussion and debate on the general principles of the bill in
the Commons House (Mowbray, 2015).
Committee stage
Page | 7

The essential purpose of this stage is to examine the detailed along with the
modification implemented at this stage.
Reporting stage
In the reporting stage, changes are made into the bill as per the voting over the
amendments which is the subject matter of the debate by the members of the house
(Elliott, and Quinn, 2015).
Third Reading
This is the last and final stage of the bill creating process, where the changes in the bill
are considered and it is the final opportunity for the members of parliament to amend
the bill.
House of Lords proceedings
The commencement of this stage begins after the end of the stage of a third reading in
the Commons House. In this stage, the procedure followed is similar to the commons
house where the changes in the bill are recommended and sent gains to the House of
Commons. The bill can move backward or forwards among the Lords and Commons
House until, and unless the end of the proceedings is done(Mowbray, 2015).
Assent of Royal
After the assent of the Queen is received and the bill considered as law in reference to
the Parliament Act. The Act can also suspend its date of commencement, which is
Page | 8

determined by the legislation of the Parliament. It is important that there is involved in
two of the houses, where the Lord's house role is secondary(Giliker, 2017).
Statutory and Common law applicability
Common law is the judgment of the previous judges which are considered by the
present judges to pass the decision in the cases involves the facts of similar cases. This
law is work on the principle of Stare Decisis, which states that the previous judges
considered the judgments of the previous judges in determining the cases(Mowbray,
2015).
Statutory & Common Law application
Common law is the law that is made by the judge who is set in the court. Statutory law
is the law that deals with the provision that is codified by the parliament as per the
parliament act. The common law which is made by the judge gets changed constantly
as per the requirement by the nation or by the country (Waughray, and Dhanda, 2016).
Effectiveness of the legal system in terms of recent reforms and developments
Under the English Legal system, there are various developments and reforms that help
in making it more successful.
Legal Reform Act, 2005, says that the Lord Chancellor has been reinstated in the Lord
house by the presiding officer, by the speaker of the new Lord. The committee was
formed so that it can be accountable in making all the appointments and also to ensure
that there is only a limited executive that should be included. The committee is also
based on the judicial.
Page | 9

Another reform is based on virtual court, the reforms say as the changing in the
technology and also the development of the advanced technology, the court has taken
the modern steps based on the innovation and also proper steps are initiative so to
consider all the proceeding in the video conferencing. It is only possible as per the
changes in the technology and adoption of the new technology video conferencing is
possible (Waughray, and Dhanda, 2016).
Page | 10

c) Illustrate how the company, employment, and contract law has a potential impact
on business
Company Law
All the provisions of the companies Act, 2006 helps in managing the cooperation and
operating in the United Kingdom. All the companies that are formed should be
registered as per Section 7 of the companies Act, 2006. Section 14 of the companies
act provides the certificate of the incorporation after the fulfillment of all the legal
documents. The definition of the company is that it is the legal body incorporated under
the law and has its separate legal entity. It is a legal body incorporated by its members.
Negligence of the rules on which the company is formed, it will be punished as per the
law such as company secretary, director of the company and any other member who is
included in the violation of the rules of the company. The effect of this will be shown in
the company and its working which will reduce the image of the company and it will
reduce the trust of the customer. The business should follow the companies law if the
business is registered under the companies act, not following of the law of the company
it will lead to wound up and the creditors may visit the court regarding the issues that
they are facing (Mowbray, 2015).
Employment Law
This law is formed basically to protect the customer at the workplace from any activity
that will affect the employees. For protecting the employees at the workplace the act is
formed that is Employment Rights Act, 2002. It is the act that provides the protection
to the employee from any misconduct, unfair, based on discrimination, friendly
environment for working. Equality Act, 2010 is formed so that all the laws relating to
discrimination practice will get updated so that better law can be made. The act states
Page | 11

that it provides protection to the employee against any misbehave done by the employer
such as discrimination, religious, based on age, color, gender, orientation, and belief.
Another act is formed for the children as child labor is increasing more in every country.
So to overcome and to protect the child the act was formed that is Vulnerable Groups
Act, 2006. It also takes care of the adults as by providing the proper working condition.
Every business should follow the Employment law so to protect the employee. If the law
is neglected then the employee will misbehave and also they will harm to the business
(Elliott, and Quinn, 2015).
Contract Law
It is the law which helps in protecting the rights of the parties. Sales and supply of the
goods act provide the protection to the purchaser and vendor under the lawful
boundaries and all the conditions. English Contract Law and Contract Act, 1999 is the
law that that is formed under the act so to enforce the third party. If the law is not
properly applied, then other than the party those who are in the contract have their right
to demand the entire claim against the misconduct done by the contracting party in the
court. The contract law is more impactful in the business as if the breach of the contract
leads to either loss to the business or loss to the other party who is involved in the
business (Mowbray, 2015).
Difference between the standards, legislations and the regulations
Legislation Regulation Standard
Legislation authority is The legislation forms a These are the rules and
Page | 12